A levy on new developments could be introduced by Coventry City Council to bring in millions of pounds worth of infrastructure funding.

The authority is considering imposing a Community Infrastructure Levy (CIL) to raise funds from developers undertaking new building projects in the city.

Money can be used to fund a wide range of infrastructure that is needed as a result of development, including schools, road schemes or health facilities.

Fees would be set by the authority according to floor space and the type of development, with Coventry council taking a particular interest in how the levy could be used on student accommodation.

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A report drafted ahead of a housing and communities cabinet meeting on March 11 shows how other authorities have charged extra on student accommodation.

At Bristol City Council, £4.34 million has been brought in from CIL receipts on student accommodation over the last six years, from a rate of £100 per square metre – a rate which is at least double the £50 and £70 rate for residential developments.

In the same period, Oxford City Council has received £7.3m from newly-built student accommodation, while Exeter City Council has received £3.38m.

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In Coventry, developers have had to pay £504,535 in Section 106 contributions from 13 developments since December 2017, but it is hoped CIL could return a far greater amount.

A council report states: “The levy creates a financial charging system with the majority of building projects potentially qualifying to contribute towards additional infrastructure that is needed to support wider planned development across the city.

“The levy also has far greater certainty in that it provides the basis for a charge in a manner that the planning obligations system alone could not easily achieve.”

It would also allow for “more flexible use of CIL receipts in terms of where and how they are spent”, the report adds.

Charges would be supplementary to the existing S106 contributions, which are negotiated between the authority and the developer, rather than via a set charge.

Coventry has been looking into the charge since 2018, after its Local Plan was adopted, although the ability for councils to charge CIL came into force nationally in April 2010.

The idea is still at an early phase as the council needs to come up with a charging policy and put the idea through consultation, with the report adding it may be autumn 2020 before the plan is adopted.